Chapter 2 Real Property and the Law Many types of property define real estate’s product. Land is one of the fundamental concepts of real estate, as well as improvements in the form of houses and outbuildings. The fence suggests the limits of ownership.

2 ©2013 Kaplan, Inc. 2 Real Property and the Law Learning objectives –Identify the rights that convey with ownership of real property and the characteristics of real estate –Describe the difference between real and personal property –Explain the types of laws that affect real estate –Distinguish between the concepts of land, real estate, and real property

3 ©2013 Kaplan, Inc. 2 Real Property and the Law Land: The earth’s surface extending downward to the center of the earth and upward to infinity, including permanent natural objects Real estate: Land at, above, and below the earth’s surface, plus all things permanently attached to it, whether natural or artificial Real property : The interests, benefits, and rights that are automatically included in the ownership of land and real estate

4 ©2013 Kaplan, Inc. 2 Real Property and the Law

5 ©2013 Kaplan, Inc. Bundle of Legal Rights 2 Real Property and the Law

6 ©2013 Kaplan, Inc. 2 Real Property and the Law Real property rights –Surface rights –Subsurface rights –Air rights –Water rights

7 ©2013 Kaplan, Inc. 2 Real Property and the Law Personal property All property that does not fit the definition of real property –Manufactured housing—Georgia specific –Plants –Fixtures Intent Method of annexation Adaptation to real estate Agreement Trade fixtures

8 ©2013 Kaplan, Inc. 2 Real Property and the Law Characteristics of real property –Economic characteristics Scarcity Improvements Permanence of investment Area Preference (Location) –Physical characteristics Immobility Indestructibility Uniqueness

9 ©2013 Kaplan, Inc. 2 Real Property and the Law Laws affecting real estate –Contract law –General property law –Agency law –Real estate license law –Federal regulations –Federal, state, and local tax laws –Zoning and land use laws –Federal, state, and local environmental regulations